MJ Gleeson

Website: MJ Gleeson
Index: FTSE Small Cap
EPIC: GLE
Supersector: Construction and Materials
Sector: Construction and Materials
Subsector: Heavy Construction
Market Cap: £169.44M
Payout Frequency: Semi-Annual

MJ Gleeson Dividend Analysis and Summary

Dividend details

Dividend type: Interim
Dividend per share (DPS): 4.0p (unchanged vs H1 24/25)
Ex-dividend date: 05/03/2026
Record date: 06/03/2026
Payment date: 07/04/2026
Estimated cash cost: ~£2.34m (company estimate)
Context: FY2025 total dividend was 11.0p (interim 4.0p + final 7.0p). The current interim is held flat.

Coverage and support

H1 EPS: 2.22p reported; 2.65p pre-exceptional — below the 4.0p interim DPS, implying sub-1x cover on H1 alone. Management notes typical H2 weighting in completions.
Cash flow: Net cash used in operating activities of £15.0m; net debt increased to £22.5m (vs £18.1m LY). Undrawn RCF headroom of ~£111m (facility to Oct-2027).
Profitability: Underlying PBT £2.0m (?44% YoY). Homes operating margin fell to 4.1% (from 5.8%); Group ROCE 7.6% (vs 8.0%). Interest costs up with higher average borrowings.
Operational support: Forward order book up 64% to 978 plots; Gleeson Land completed 3 sales in H1 and expects further activity H2; partnerships provide capital-light sales and improve capital returns.

Management outlook and policy signals

Dividend held flat at 4.0p, suggesting a cautious stance amid margin and demand uncertainty.
Full-year delivery depends on a strong Spring selling season; guidance update due in April 2026.
No explicit changes to dividend policy disclosed.

Analysis: sustainability and growth trajectory

Sustainability near term: Interim dividend is not covered by H1 earnings and coincides with negative operating cash flow and rising net debt. However, sector seasonality and a stronger H2 (650 Homes completions expected from the order book plus planned Land transactions) could restore full-year cover. Facility headroom provides liquidity backstop.
Growth: DPS is flat YoY at the interim stage. With ongoing margin pressure (build cost inflation, incentives, regulatory/tax headwinds) and softer bulk investor demand, near-term dividend growth looks constrained. Medium-term prospects hinge on execution of “capital-light” partnerships and the Homes restructure.
Capital allocation: Continued investment in land and site openings alongside restructuring to lower overheads (expected £1.1m annual savings). Small own-share purchases for EBT only; dividends maintained. Balance sheet flexibility remains adequate, but higher interest and inventory build require disciplined cash management.

Potential impacts from structural/strategic changes

Project Transform (restructure): Further exceptional charges up to £4.5m in H2 (incl. up to £3m non-cash impairments). Targeted to streamline operations and improve efficiency, supportive for medium-term cash generation and dividend capacity.
Partnership model expansion: More capital-light developments with partner funding can reduce working capital intensity and support future dividend resilience if scaled successfully.
No M&A, demergers, or share consolidation announced.

Key risks and flags for dividend stability

Execution risk in H2: Management explicitly relies on a strong Spring; a shortfall would pressure earnings and cover.
Margin pressures: Build cost inflation (~2.6%), elevated incentives, softened bulk investor market, and regulatory/tax headwinds (incl. Future Homes Standard cost uncertainty) weigh on profitability.
Cash outflows and leverage: Rising net debt (£22.5m) and higher interest costs reduce headroom for distributions if trading underperforms.
Building safety provision: £11.7m outstanding; timing of remediation cash spend could be uneven and compete with dividends.
Land timing risk: One H2 land sale representing ~50% of forecast plots depends on final highways design; slippage would impact earnings/cash.
Planning environment: Although NPPF changes may help, current planning delays can affect site openings and sales phasing.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
06/03/2025	04/04/2025	Interim	4.00p	GBX
23/10/2025	21/11/2025	Final	7.00p	GBX

Total (Annual Dividends Per Share): 11.00p

Dividend Yield = Annual Dividends Per Share (11.00p) ÷ Share Price (292p) = 3.77%

Ex Dividend Date	Payment Date	Type	Amount	Currency
05/03/2026	07/04/2026	Interim	4.0000p	GBX
23/10/2025	21/11/2025	Final	7.00p	GBX
06/03/2025	04/04/2025	Interim	4.00p	GBX
24/10/2024	22/11/2024	Final	7.00p	GBX
29/02/2024	02/04/2024	Interim	4.00p	GBX
26/10/2023	24/11/2023	Final	9.00p	GBX
02/03/2023	03/04/2023	Interim	5.00p	GBX
27/10/2022	25/11/2022	Final	12.00p	GBX
03/03/2022	04/04/2022	Interim	6.00p	GBX
28/10/2021	22/11/2021	Final	10.0p	GBX
04/03/2021	06/04/2021	Interim	5.00p	GBX
05/03/2020	03/04/2020	Interim	12.00p	GBX
14/11/2019	13/12/2019	Final	23.00p	GBX
07/03/2019	05/04/2019	Interim	11.50p	GBX
15/11/2018	14/12/2018	Final	23.00p	GBX
08/03/2018	06/04/2018	Interim	9.00p	GBX
16/11/2017	14/12/2017	Final	17.50p	GBX
09/03/2017	07/04/2017	Interim	6.50p	GBX
17/11/2016	15/12/2016	Final	10.0p	GBX
03/03/2016	04/04/2016	Interim	4.50p	GBX
19/11/2015	17/12/2015	Final	7.30p	GBX
05/03/2015	02/04/2015	Interim	2.70p	GBX
20/11/2014	17/12/2014	Final	4.90p	GBX
05/03/2014	04/04/2014	Interim	1.10p	GBX

Year	Interim	Final	Currency	Total	Change
2024	4.000	7.000	GBX	11.000	-21.420
2023	5.000	9.000	GBX	14.000	-22.220
2022	6.000	12.000	GBX	18.000	20.000
2021	5.000	10.000	GBX	15.000	25.000
2020	12.000		GBX	12.000	-65.210
2019	11.500	23.000	GBX	34.500	7.810
2018	9.000	23.000	GBX	32.000	33.330
2017	6.500	17.500	GBX	24.000	65.510
2016	4.500	10.000	GBX	14.500	45.000
2015	2.700	7.300	GBX	10.000	66.660
2014	1.100	4.900	GBX	6.000

Number of Shares:

Payment	Paid	Amount
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